By George E. Krauter
“A Person Who Never Makes a Mistake, Never Tried Anything New”– Albert Einstein
At a procurement expo and conference, 58 people visited our MRO presentation on the benefits of outsourcing management of the MRO supply chain. Of those 58, 27 expressed significant interest in outsourcing MRO inventory management to reduce operational costs and increase plant reliability—and save their company money. Subsequently, of the 27 who were interested, just four continued into programs which resulted in an average 25% reduction in total cost of MRO ownership, inventory recovery via Master Data Leadership™ and Mean Time To Repair (MTTR) reductions that increased asset reliability.
Okay, what happened to the other 23 expo visitors who were positive about MRO cost recovery but did not take action to consider any next steps when they returned to the plant? Here are the results of an investigation into why the recognition of the potential benefits of MRO changed (did not resonate) from the positive interest at the expo to the real world in their work space.
So, keeping the status quo is safe, especially when change is considered radical, aka MRO outsourcing. Are the benefits of change worth the risk? How would you know if you do not investigate the potentials? As Albert Einstein said, You can’t make a mistake if you do not try anything new. What if he had not tried anything new? What if he had not taken the risk?
These 23 people are “MRO safe,” while their company continues to assume cost burdens that can be recovered.
Listen to a series of My Purchasing Center podcast interviews with George Krauter based on ideas in his new book, Outsourcing MRO: Finding a Better Way:
George Krauter, former founder and president of Industrial Systems Assoc. [I.S.A.] has retired as vice president of Synovos.
Currently, he has initiated, "George Krauter Consulting [GKC]" for effective reliability and cost recovery for consumers of MRO materials. George is a recognized authority on the management of the MRO supply chain and support for maintenance reliability programs. His book, "OUTSOURCING MRO...FINDING A BETTER WAY" is available from Amazon and from Reliability Web.com.
He is published in Uptime, Modern Distribution Management, and Supply and Demand Chain Executive. George has conducted seminars across North America, in Europe, and in the U.A.R. as well as a guest speaker at Temple U., Howard U., Duke, and MIT.
George is a graduate of Temple University; he lives with his wife, Joyce, in Bucks County, PA. All grand kids live within eating distance. He can be reached anytime: email@example.com.
Management of corporate maintenance, repair and operations (MRO) requires the tracking of thousands of SKUs and the generation of many transactions that are of low dollar value in nature. In most organizations, MRO spending amounts to less than Read More
No company is immune to software audits. Poor leverage with top software vendors, suppliers’ focus on audit income as a source of additional revenue, complex software contracts and licensing models, Read More
Millennials have an unwarranted reputation in the workforce as short-term employees always looking for a better opportunity, including in the supply chain management (SCM) work force. Read More
Staples Advantage is the one supplier that offers all the business solutions you need, all with the expertise of a specialty vendor. Read More
It started in 1972 with an idea, a new concept in distribution. Today, Digi-Key Corporation is one of the fastest-growing electronic component distributors in the World. The stimulus for this growth is Digi-Key's customer-centered business philosophy… Read More
Procurement and supply management leaders have a seat at the table, and management’s expectations are high. But what do CEOs really want, and is purchasing delivering on these expectations? This webcast looks at how procurement and supply management … Read More
At world-class companies, purchasing’s influence touches just about every area of spending. But, how exactly do procurement teams get to the point where other departments approach them for help with sourcing such indirect categories as human resource… Read More